The answer to the fuel hedging blunder!
It appears that CX has finally found the answer to the fuel hedging blunder!!
In a time of near record low fuel prices and airlines (most) making good to record profits due to the benefit of low fuel prices, what does an airline do when fuel hedging loses outstrip operating profit?
What do they do when the authority approving fuel surcharges (CAD), and rightly so, says no due to the very low cost of fuel?
What do you do at a time when other airlines are investing in their product to attract passengers and we are cost cutting to the bone?
You come up with a solution that is an insult to every passenger who is about to purchase a ticket with the airline.
Pop quiz. What did CX do:
a) Publicly admit the blunder and take steps to ensure you have people in place who actually know what they are doing and put in place a strategy to invest in your business to attract passengers and improve relations with staff.
or
b) Circumvent the CAD embargo on fuel surcharges by charging a fuel surcharge for all flights originating outside Hong Kong, effective from 15 September 2016.
Words fail me.